PIB 3.18.4 Guidance

1. In calculating its minimum Leverage Ratio under PIB Rule 3.18.4(2) an Authorised Firm that, for example, is subject to a 2% HLA Ratio for being a G-SIB, should have a Leverage Ratio of at least 4%, consisting of 3% (the minimum Leverage Ratio) plus 1% (50% of its HLA Ratio).
2. Circumstances in which the DFSA may require a higher minimum Leverage Ratio under PIB Rule 3.18.4(4) include where:
a. it is necessary due to the Authorised Firm’s risk profile;
b. it has received a request from a regulator as part of measures to preserve financial stability; or
c. it considers it reasonably necessary due to any other circumstances.
Derived from DFSA RMI322/2021 (Made 1st January 2022). [VER41/01-22]